A lawyer provided information on imminent court judgment from the United States Securities and Exchange Commission (SEC) regarding its lawsuit against Ripple. legal battle appears to finally be nearing its end, the lawyer explained how the potential judgments could impact Ripple’s reputation and its digital asset operations in the United States (US).
SEC Rulings Looming for Ripple
Fred Rispoli, the founder of HODL Law, was recently featured in a Youtube video hosted on the Thinking Crypto podcast, by Tony Edward. When asked if the judgment against Ripple would involve penalties for institutional sales of XRP, Rispoli confirmed that Ripple would indeed be forced to pay a specified amount of fines.
He revealed that the punishment would not be as severe as expected. Initial $2 billion fine from SEC to sell XRP to institutional investors. However, he also acknowledged that a $2 billion penalty would be difficult and detrimental for the crypto company, but not fatal for the company.
Rispoli predicted that the SEC Judgment will likely be less than $25 million, accompanied by a penalty, as opposed to restitution. He added that the most important aspect of the upcoming judgment would be Ripple’s injunction and potential restrictions placed on the company. According to the lawyer, these terms of injunction would be of considerable importance for Ripple’s future operations and financial interests.
The HODL Act founder also revealed that the SEC wants a “broad injunction” for Ripple. He noted that the regulator had written in its draft order last year, to restrict its ability to execute any activity that could remotely be considered unregistered securities transactions.
However, Rispoli revealed that the judge would most likely avoid any new cases brought by the SEC without litigation. He pointed out that when a government entity like the U.S. SEC is involved in a lawsuit, it typically has 60 days to file a notice of appeal instead of the standard 30 days. Once Ripple’s ruling is upheld, the SEC will have exactly 60 days to decide whether it will appeal.
Future implications of the legal battle
When speaking about the outcome of the lawsuit between Ripple and the SEC, Rispoli revealed that Ripple may have to expand their operations outside the United States if the outcome of the trial becomes detrimental. He stressed that this would be a major blow to the American economy, given the company’s status as a leading crypto payments company and its future goals of becoming a global alternative to SWIFT Network.
He also revealed that Ripple’s plans for an initial public offering (IPO) could be hampered or delayed by the SEC. Additionally, the company stablecoin launch in the future could be considered a security, given The SEC’s anti-crypto stance.
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